Offers to debtors - credit rating affected further?

PaulW922

If your finances are already in a state whereby a repayment plan is necessary then I really don't think you need worry about partial settlement markers. Most of your accounts will show as in arrears or default anyway. If they are defaulted then it will make no difference and the default will drop off after six years. If they are in arrears they may show as partially settled but at that point the six year countdown to them dropping off your file completely will starts sooner.

If partial settlement makes financial sense for you I would go ahead and do it.

Manders_247

I am in a similar situation as it has come to crunch time for me. I have defaulted on one of four credit cards and the others are in arrears. I am in two minds about wether to offer full and final settlement or just default on others..my partner is in process of buying a house and i will be living there,my credit rating will be so bad i don't think i will be able to use the address anyway as i don't want to negatively affect his credit rating! I am a little confused from these posts as it seems people are suggesting it is not wether the account has been settled partially, in full or even at all but if there are defaults (which i already have on one account) this is what future decisions are based on, in which case i have nothing to lose at this point by just walking away and waiting six years for them to fall off the credit file? have i got this correct?

glentoran99

They don't just go away, they don't show on your Credit file but you still owe the money and the creditors can get a CCJ which is more severe and will affect your ability to get credit for longer

20aday

Manders_247 wrote: »

I am in a similar situation as it has come to crunch time for me. I have defaulted on one of four credit cards and the others are in arrears. I am in two minds about wether to offer full and final settlement or just default on others..my partner is in process of buying a house and i will be living there,my credit rating will be so bad i don't think i will be able to use the address anyway as i don't want to negatively affect his credit rating! I am a little confused from these posts as it seems people are suggesting it is not wether the account has been settled partially, in full or even at all but if there are defaults (which i already have on one account) this is what future decisions are based on, in which case i have nothing to lose at this point by just walking away and waiting six years for them to fall off the credit file? have i got this correct?

It's worth pointing out the only way you could affect your partner's credit rating is by creating a financial association (i.e. joint bank account).

Credit ratings aren't assigned to an address despite it being a common myth.